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so me and my husband want to purchase a home these are our credit scores what do you all think? 623/660/554 & 602/609/588 possible?

It won't be easy at all in this economy, but if you look through enough banks and loan companies, you are bound to find at least one that will work with you. BUT you have to think about if you are willing to pay the interest rate that you will get with scores like that.

Answer by
Anonymous
at 9:47 PM on Feb. 7, 2010

Scores aren't great, but not horrible either. You can purchase a home ... may have to put more donw and pay a higher interest rate at first, but you can refi in a year or two with on time payments for a year or more .. and focus on getting those scores up will help lower interest rate when you refi. GOOD LUCK !

No they won't give you the loan . FHA requires you to be at 625, and that doesn't mean you won't have to take care of some things ahead of time. Those scores are considered really low. We are in the process right now.

hmmmm....these days you'll prob need 20% down no matter what your score. I would speak to a good local Realtor to discuss your options. Good luck!

Answer by
Anonymous
at 9:49 PM on Feb. 7, 2010

/sorry let me clarify...even if your score is at 750 if you have certain things on your credit they may ask you to take care of it. And the credit scores you get aren't neccecarily the ones they use. I got mine and what they went off of were different. Mine were about the same range as yours. I did however find a baqnk who will finance us if we go through their credit clean up guy. I know I could do it myself, but he's better at it!! I could cut my own hair but I'd rather someone else do it!lol

No - with those scores you won't find a lender to even look at you. It also depends on debt to income ratio, income and credit history - but the scores are the first thing they look at. You need AT LEAST a 680 and have 20% down with most lenders right now.

FHA will do a loan with a min credit score of 580. This is the lower middle score of the 2 of you which is a 602 based on your numbers. It will be hard to find a lender that will go that low but they are out there. With an FHA loan you will need to have 3.5% down but this can be a gift. If you have judgments they are going to need to be paid off. If you have collections in excess of $5000 they will need to be paid off also.

I'd be more worried about why the first set of numbers are so much different from each other - over 100 in difference is really crazy! Get to the bottom of why they're so far apart, do anything and everything you can do to take care of whatever's pulling them down, give it a year to clear what you take care of, let your scores come up as stuff is cleared, THEN relook at attmepting to buy.